Page:United States Statutes at Large Volume 87.djvu/53

(or one or more includible corporations in an affiliated g-ronp, as defined in section 1504, of which such corporation is a member) owns directly or indirectly (within the meanino- of section 4015(a)(1)) 10 percent or more of the total combined votin<2: })Ower of all classes of stock of such foreign corporation, except to the extent such foreign corporation has, after having given advance notice to the Secretary or his delegate, sold its debt obligations to persons other than persons described in clauses (i) and (ii) and this clause and is using the proceeds of the sales of such debt obligations to acquire the debt obligations of such corporation (or such other domestic corporation),"'. (4)

PERCENTAGE OF STOCK CHVXED BY PAPVEXT COPXPORATIOX or

QLFC—Section 4920(d)(2) (1^) is amended by striking out "by one or more members of a controlled group (as defined in section 48(c)(3)(C)) of which such corporation is a member (or by a corporation which would be such a member if it were a domestic corporation)" and inserting "by a corporation owning directly or indirectly (within the meaning of section 4915(a)(1)) 10 percent or more of the total combined voting power of all classes of stock of such corporation". (5) SOURCE OP^ FUNDS FOR QLFC'S,—Section 4920(d)(2) is amended by— (A) striking "or*' at the end of subparagraph (C), (B) striking the semicolon at the end of subparagraph (I)) and inserting in lieu thereof a connna and "or", and (C) adding at the end thereof the following new subparagraph: (E) the proceeds of the sale of debt obligations (by a domestic corporation which has made an election under section 4912(c) with respect to such debt obligatioiis) to a person other than a person described in clause (i), (ii), or (iii) of subparagraph (A) if the proceeds are transferred directly from the lender to such corporation;"'. (6) Egurry INVESTMENTS OF QLFC"S.—Section 4920(d)(3) is amended to read as follows: "(3) which does not acipiire oi' own any stock of foreign issuers or of domestic corporations oi' domestic partnerships other than— "(xV) stock of one or more members of a controlled group (as defined in section 48(c)(3)(C)) of which such corporation is a membei- (or of a corporation which would be a member if it were a domestic corporation) acquired as payment for stock, or as a contribution to capital, of such corporation, " (B)(i) stock of a corporation described in section 4915(e) (2)(C) ()]• section 4920(a) (3B), if 10 percent or more of the total combined voting power of all classes of such stock is owned (directly or indirectly) by the acquiring corporation, or "(ii) stock of a partnership which meets the requirements of section 4920((1)(1) and (2) under regulations pronudgated by the Secretary or his delegate, if immediately following the acquisition such corporation owns (directly or indirectly) 10 percent or more of the profits interest in such partnership,